Expert strategies and tips that still hold true today
Through the years, the Top Producer team has crisscrossed the nation and traversed the globe to bring fresh perspectives, new ideas and expert advice to your farm’s kitchen table. News has ranged from the financial crisis of the 1980s to explaining how puts and options work when they were first made available as a marketing tool. Our experts have delved into farming’s best business practices and analyzed market moves. In celebration of the magazine’s 30th anniversary, here’s a review of some of the advice found in early issues of Top Producer that have withstood the test of time.
January 1984. Don’t react to 1984 based on what you learned in 1983. Instead, consider the possibility of another 1981–it followed a drought year, too. The drought year was last year. This year, we could see big acreage, big crops and falling prices, cautioned John Marten, former Farm Journal economist. "With normal weather, I look for 1984/85 corn prices to average 50¢ below 1983/84; soybeans, $1 lower; wheat and cotton about steady," he said. In a drought year like 1983, forward selling doesn’t pay off as expected. But in 1981 it paid handsomely. Use risk management techniques–figuring the odds for and against two drought years in a row–to decide where you want to lay your bets this year.
January 1987. "Without discipline, the rest is meaningless," said Ron Frost, former vice president of the Chicago Mercantile Exchange. "That is the most important reason for losing in commodity markets," he said. The following tactics are basic for marketing discipline:
D Determine what your profit objective is and what your loss limit is.
I Investigate new trading techniques and tactics like the ones in this book.
S Set your priorities before making a trade.
C Concentrate on the market signals.
I Intelligently apply your rules of trading.
P Plan your trade and trade your plan.
L Learn to make decisions without always second-guessing yourself.
I Isolate yourself from the crowd.
N Never look for excuses or anyone else to blame.
- Spring 2013